08:18 AM EDT, 07/29/2025 (MT Newswires) -- Canadian job growth appears to be accelerating again and the unemployment rate has barely increased since trade

uncertainties flared up earlier this year, said CIBC.

It seems too good to be true, wrote the bank in a note to clients. "Unfortunately, that's probably because it is."

The notion that Canada's labor market is in good health, aside from an understandable weakness in trade-sensitive areas such as manufacturing, is too simplistic and likely incorrect, stated CIBC.

Actual employment growth over the past year may have been much slower than advertised by the Labour Force Survey (LFS), including in sectors that should be less sensitive to trade uncertainties, pointed out the bank.

Meanwhile, the modest rise in the unemployment rate appears to reflect the continued struggles of new or re-entrants to find work, rather than actual job losses confined to areas such as manufacturing, it added.

A weaker-than-advertised labor market should, over time,

place downward pressure on core measures of inflation and

allow the Bank of Canada to cut interest rates again before the end of the year, according to CIBC.